We have six benefits to buying a second hand car.
Vehicle depreciation is an unavoidable reality of driving, but a used vehicle offers much less depreciation than a new vehicle. New cars typically depreciate about 20-25 percent when they are driven off the lot. And most cars will lose another 10 percent in value during the first year.
A used vehicle depreciates at a much slower rate than a new vehicle. This is because once you’re behind the wheel of the vehicle it will have already undergone its major depreciation.
Insurance costs vary based on your age, driving history, credit score, mileage and location. Typically — just as the vehicle will cost less — insurance for a used vehicle tends to be lower than that of a new vehicle.
The expected extra fees that come with your used vehicle are not created equal across the country. But they are less expensive than the fees associated with a new vehicle because the cost of the vehicle is less in the first place.
Stretching your car-buying rands is another major benefit that comes with buying a used car. You can buy more car by purchasing used rather than new. If you have your sights set on a luxury vehicle, you may not be able to afford this year’s model, but one that is two or three years old could better fit your budget.
In the past, driving used cars carried a stigma and many drivers saw it as a risk, but the availability of vehicle history reports has altered this landscape. Drivers now can see details about a car’s ownership, accident history, title status, kilometres and more.
Before signing off on a used vehicle, take advantage of offerings from websites like Autotrader to see history reports on the vehicle. Based on the car’s vehicle identification number, or VIN, these reports provide an array of valuable information including verification of the mileage and whether the vehicle was ever declared a total loss by an insurance company.
Almost a quarter of the carbon dioxide a vehicle produces during its life-cycle occurs during manufacturing and initial shipment. Buying a used car reduces the carbon dioxide output into the environment. Used cars also impact the environment less than newer, hybrid vehicles.